​Information new this week is in italics.
The Missouri Credit Union Association (MCUA) is in the process of analyzing bills introduced in the 2012 session of the Missouri General Assembly. If you would like to weigh in on any of the topics, contact Peggy Nalls at 800.392.3074, ext. 1305 or pnalls@mcua.org.

Bankruptcy Exemption

HB 1159
Sponsor: Rep. Shelia Solon (R-District 55) This is the same language the representative introduced in 2011. It would increase the homestead exemption in bankruptcy from $15,000 to $125,000 for those over 62. Click here for the bill language.Impact: The bill would reduce the amount of funds available for credit unions and other holders of unsecured credit in a bankruptcy. Position: Against, will be discussing the bill with the sponsor.Status: 1-9-12 Read second time in the House.

Payday Lending

SB 462
Sponsor: Sen. Joe Keaveny (D-District 4) and SB 476, Sponsor: Sen. John Lamping (R-District 24) The bill applies to payday lenders, and does not apply to other financial institutions. Changes to current law include a prohibition renewing a payday loan more than once and a prohibition of making payday loans to consumers who have one outstanding loan or within one day of a borrower paying a previous loan. Disclosures must be made on the duration, amount, date due, and amount of interest and fees charged during the duration of the loan. Current law allows loans with a 14-day minimum and a 31-day maximum. Under the act, the minimum is 90 days with required payments every 15 days. Click here for the bill language. Impact: The bill does not apply to credit unions.Position: Neutral.Status: 2-3-12, SB 462 Meeting set for 2-6-12 in the Senate Committee on Financial/Gov. Org. and Elections. 2-3-12, SB 476 Meet set for 2-6-12 in the Senate Committee on Financial/Gov. Org. and Elections.

HB 1294
Sponsor: Rep. Mary Still (D-District 25) Mirrors payday lending ballot initiative language that would cap a combination of fees and interest rate at 36%.Impact: ​This bill would institute a 36% usury limit on all lending and would affect credit unions. Click here for the bill language.
Impact: Would apply to credit union lending.Position: Neutral.Status: 1-17-12, Read second time in the House.

HB 1393,
Sponsor: Rep. Don Gosen (R-district 84) Sets out that payday lenders cannot make more than one unsecured loan of $500 or less to a consumer, within one day of the consumer paying off a loan, and any consumer may not have more than $500 outstanding at any time among all payday lenders. The Division of Finance is directed to set up a database to track all payday loans in the state. Click here for bill language.Impact: Credit unions are exempted.Position: Neutral.Status: 1-23-12, Read second time in the House

Renters and Foreclosure

SB 554
Sponsor: Sen. Kiki Curls (D-District 9) The bill changes a 10-day requirement to notify renters in a foreclosure action to 90 days. Federal statutes are currently at 90 days to notify a renter. The federal law takes precedence. There is a sunset provision that would take effect in 2014. Click here for the bill language.Impact: The bill would impact credit unions if Congress does not sunset the 90-day provision. If the state 10-day notice is not changed to a 90-day notice and the federal law sunset is not renewed, Missouri law would revert to the 10-day notice.Position: Neutral, at this time.Status: 1-15-12 Referred to Senate Committee on Judiciary Civil/Criminal Jurisprudence

Abandoned, Towed Vehicles

HB 1111
Sponsor: Rep. Don Gosen (R-District 84) The bill allows adds that towed abandoned property can be released to the owner’s designated representative. Currently, it can only be released to the owner or to the holder of a valid security interest of record. Click here for bill language.Impact: Assessing.Position: Assessing.Status: 1-5-12 Read second time in the House.

SB 633
Sponsor: Sen. Kevin Engler (R-District 3) and HB 1064, Sponsor: Rep. Mike McGee(R-District 122) Salvage companies would like to avoid having to provide the original certificate of title, salvage certificate, or junking certificate when a vehicle is ten years old or older. Instead, they would like to submit a copy of the seller’s state identification along with the bill of sale. Click here for bill language.Impact: We are assessing whether there is adequate protection for lienholdersPosition: Assessing.Status: 2-2-12, SB 633 Referred to the Senate Transportation Committee. 1-5-12 HB1064 Read second time in the House.